tybs
Why Stratospheric Container Rates Could Rocket Even Higher
Spot ocean container rates are up triple digits year on year, ergo they must be near their peak. They’re so high they don’t have much more room to run. So goes a common belief in the container market, despite the fact that this premise has already been proven wrong, and that container rates could theoretically have a lot more room to run if the upper limit is defined the same way it is in non-containerized shipping. One leading freight-forwarder executive told American Shipper in August 2020 after the initial spike, “I do not think there is room for growth beyond $4,000 [per forty-foot equivalent unit or FEU].” Nine months later, many all-in trans-Pacific rates including premium charges are more than double that — and rising sustainably. Importers commonly pay $8,000-$10,000 per FEU or more, including extra charges, sometimes a lot more. But why stop there?
Retail inventories-to-sales ratios are still at historic lows, stimulus checks are still supporting spending, and the traditional peak season is right around the corner. Meanwhile, U.S. households accumulated an enormous amount of excess savings during the pandemic (equivalent to 12% of GDP, according to Moody’s) that may now be unleashed.
What if the high-end case for U.S. import demand plays out over the rest of this year and exceeds vessel and equipment supply even more so than it does today? A common response from shippers in online forums is that regulators will intervene if rates go too high. That’s not going to happen, at least in the U.S. During a presentation last week, Federal Maritime Commission (FMC) Chairman Daniel Maffei made clear that if high freight prices are being caused by market forces, there’s nothing the FMC can currently do about it.
The current rate spike is unprecedented in the history of container shipping. The sector is in completely unchart(er)ed territory (one reason why rate predictions over the past nine months have been repeatedly wrong). However, there is an extensive history of precedents in non-containerized shipping — in crude tanker, gas carrier and dry bulk markets — that shed light on how high the maximum spot rate can go. The freight rate of a spot cargo in bulk commodity shipping is elastic all the way up to the point where it erases the profit margin of the shipper. Rates for very large crude carriers (VLCCs, tankers that carry 2 million barrels of oil) topped $200,000 per day in October 2019 and March-April 2020. A liquefied natural gas carrier was booked at $350,000 per day in January.
An example of the upper limit being hit was recounted by Trygve Munthe, co-CEO of crude-tanker owner DHT. Referring to the rate peak in the second week of October 2019, he said, “When you get to that kind of freight level, you make it very hard for the refiners to make money. In that crazy week, we happened to be in Korea meeting with a lot of refiners, and they told us that at those freight levels, it just didn’t make sense for them. They said they would just pull back on their [refining] throughputs.”
moar
https://www.zerohedge.com/economics/why-stratospheric-container-rates-could-rocket-even-higher
Vladimir Putin issues order on voluntary evacuation of Russian citizens from Gaza Strip
Russian President Vladimir Putin has signed an order to evacuate Russian and Commonwealth of Independent States (CIS) citizens from the Gaza Strip at their request, the document was published on the official legal information portal.
"In light of the sharp deterioration of the situation in the Gaza Strip resulting from the military operation by the armed forces of the State of Israel, evacuation of Russian Federation's and CIS member states' citizens who are inside the Gaza Strip, should be considered if they express such a desire," the document read.
Putin tasked the foreign ministry, the emergencies ministry and the foreign intelligence service with determining the deadline and format of citizens evacuation, taking into consideration the developments in the Gaza Strip. "The list includes more than 400 people – both fellow countrymen and CIS citizens. The periods and routes of their evacuation from the enclave are under development," the representative office said. In response, Israel has fired retaliatory strikes against Gaza. According to the latest information, 12 people were killed in Israel and over 50 were seriously wounded.
The number of victims in Palestine has topped 200.
https://www.indiablooms.com/world-details/F/29419/vladimir-putin-issues-order-on-voluntary-evacuation-of-russian-citizens-from-gaza-strip.html
>>55061
ODIN99 USAF E-4B Nightwatch trails 09-0017 USAF C-32A that departed JBA heading west over FL panhandle nao and just about to pass to the north of Eglin AFB
Certainly not a routine habbening at this point
>>55030 pb
SAM330 USAF G5 on ground at Paine Field, Seattle WA from JBA depart
Cap#2 is Paine Field Webcam and shows the G5 moving off runway for taxi
Treasury Calls for Crypto Transfers Over $10,000 Reported to IRS
The U.S. Treasury said the Biden administration’s proposal to strengthen tax compliance includes a requirement for transfers of at least $10,000 of cryptocurrency to be reported to the Internal Revenue Service.
“As with cash transactions, businesses that receive cryptoassets with a fair-market value of more than $10,000 would also be reported on,” the Treasury Department said in a report on tax-enforcement proposals released Thursday.
The Treasury said that comprehensive reporting is necessary “to minimize the incentives and opportunity to shift income out of the new information reporting regime.” It noted that cryptocurrency is a small share of current business transactions. The IRS in 2020 added a line about cryptocurrency on the Form 1040, the individual tax return, in an effort to gain more visibility into virtual currency transactions. President Joe Biden’s administration is also calling for banks to report on account flows to help boost tax-payment compliance.
“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury said.
https://www.bnnbloomberg.ca/treasury-calls-for-crypto-transfers-over-10-000-reported-to-irs-1.1606444
aaaaand cryptotards habs another bad day
Not like this info is not already available to them.
will update current tracked birds upon return
>>55037 pb
BOXER48 USAF C-40B on ground at Travis AFB, CA from JBA depart earlier today
SAM419 USAF G5 on ground at Nashville Int'l TN from JBA depart
ODIN99 USAF E-4B Nightwatch splits off for trailing 09-0017 USAF C-32A that is heading back to JBA-ODIN99 likely back to Seymour Johnson AFB
>>55039 pb
The 6 C-130 Hercules that departed Bangor, ME are west of Dallas/Ft. Worth at low altitude just over the Brazos River
cuz he knowz that it's gonna be invaded by Israeli ground troops soon
It's this exact situation that peeps lose any sort of common sense.
If they wanted to Gaza would be a glass factory by nao...and no one asks why isn't it?
Not that I am in support of that at all
Yet they seem to be supplied with some pretty heavy weapons.
Wonder who allows that...
kek
werd up bro